Demand for the iPhone 11 and the iPhone 11 Pro series is more than anticipated and these devices are selling better than what analysts had expected. Cowen analysts had first expected Apple to sell around 44 million iPhones in Q3 of this year. However, due to the strong demand, they have now increased their forecast to 47 million.
The 3 million increase in iPhone shipments is being attributed to the $150 price reduction of the iPhone XR. Out of the total 47 million, Cowen expects Apple to sell around 32 million units of its new iPhone 11 series, with the iPhone 8, iPhone X, and iPhone XR making up for the rest.
Similar to Cowen, reputed analyst Kuo has also increased its estimates of the iPhone shipment for the quarter due to the strong demand for the new iPhones. Despite the increase in iPhone shipments in Q3 though, Cowen expects Apple to ship the same 65 million iPhone units as last year. Out of this 65 million, 47 million units will be constituted by the iPhone 11 and iPhone 11 Pro.
“We believe the lower year-on-year build plan may be intended to better control excess inventories going into 2020,” writes Cowen. “Especially given the heightened channel inventory levels experienced post-holiday season for the past two years.”
JP Morgan analysts have also increased their iPhone shipment estimates for the quarter. Their increase is relatively modest in nature by 1 million, though they expect Apple to now ship 3 million more iPhones in Q4 2019.
Despite the strong interest in the 2019 iPhones, analysts expect there will be a strong demand for the 2020 iPhones due to their new form factor and 5G support. For 2019, JP Morgan sees Apple ship 185 million iPhones, with the number increasing to 198 million units in 2020.
Are you surprised by the strong demand in the iPhone 11 and the iPhone 11 Pro series? Why do you think consumers are upgrading to it? Is it the triple-camera setup? Or the longer battery life?